2012 Tax Year Procedures. New for the Filing Season. New for tax year 2012

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Rhea Reed Director Revenue Administration Division

2012 Tax Year

2012 Tax Year

Procedures

Procedures

New for the

New for the

Filing Season

Filing Season

New for tax year 2012

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Going Paperless – Going Green

9 Resident tax booklets will be available in limited supply at local area participating libraries beginning in January 2013.

9 Forms CD’s are discontinued.

9 For tax year 2012 and after, you may access the booklet online electronically or print the tax booklet from our Website at

www.marylandtaxes.com.

9 All of our forms and instructions are available for downloading and printing at our Website.

Updates

Updates

and Reminders

and Reminders

Going Paperless – Going Green

9Paid Preparers who completed 100 or more original Maryland individual income tax returns for Tax Year 2011 are required to file all original individual income tax returns electronically for Tax Year 2012. 9Did you know? It costs about $1.95 to

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Going Paperless – Going Green

9 The Comptroller may impose a $50 per return penalty not to exceed $500 per preparer for non-compliance with the eFile mandate.

9 Preparers may request a one-year waiver from the Comptroller.

9 Taxpayers may elect to opt out of efiling by checking the relevant box on the return. These returns will not be counted when determining efile requirements.

Threshold for W-2 Submissions

9 For calendar year 2012, employers/payors with 25 or more W-2/1099R forms with wages/payments subject to Maryland withholding are required to file these statements and the annual withholding reconciliation electronically.

9These forms can be filed either by using our free bFile application or by submitting magnetic media in the approved format.

Filing Deadline

9The filing deadline for tax year 2012 is Monday April 15, 2013.

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Certification Requirement for

Electronic Returns

9Supporting documentation for certain credits must be submitted within 14 calendar days for the credit to be allowed.

9The preferred submission method is as a PDF attachment with the return.

9Documentation can also be sent by fax, e-mail or regular mail.

9See our eFile handbooks for details.

MeF – Modernized Efile

9We continue to welcome software vendors who support MeF.

9MeF supports PDF attachments, allowing supporting documents to be submitted along with tax returns.

9Using software which supports the MD Schedule K-1 may eliminate the need to fax or email credit documentation.

Social Security Number Validation

9All Social Security Numbers (primary, secondary and dependent) will be validated through the Internal Revenue Service before processing the return. 9Filings with invalid SSN’s may

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Balance Due Electronic Returns

9Revised tax notices for balance due

electronic returns that did not request direct debit will not be sent until after the payment is due.

Returns Filed Without W-2s

9Returns claiming MD tax withheld and

filed without supporting W-2, 1099 or K-1 will not be processed, and will be returned to taxpayer.

Free Internet Filing

Free Internet Filing

for Individuals

for Individuals

-

-i

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Online Filing for Individuals

9Free Internet filing of personal tax

returns through iFile is available for :

ƒ Resident and nonresident returns

ƒ Amended returns if the original return was filed through iFile

ƒ Extension requests ƒ Estimated payments

Free Internet Filing

Free Internet Filing

for Businesses

for Businesses

-

-b

b

-

-

File

File

b-File for Online Business Filing

9Businesses and employers can file

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b-File Advantages

9b-File offers several advantages over electronic funds transfers (ACH credit and debit methods):

9It provides more detail than the limited EFT record layout

b-File Advantages cont’d

9View filing history

9Schedule payments in advance up to the due date

9Receive confirmation info for printing

b-File Advantages cont’d

9Save FEIN, Central Registration

number and bank info during registration for pre-filling future filings and avoid keying errors 9Edit previous filings up to two days

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b-File Advantages cont’d

9File annual withholding reconciliation and report W-2s

9File for current year as well as two prior years

9Calculate discount on timely filed sales and use tax filings when applicable

9Multiple accounts can be accessed by a single registration

Direct Debit

Direct Debit

Payments

Payments

Direct Debit

cont’d

9Direct debit is available for:

ƒ Personal and business income tax returns filed electronically

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Bill Pay Electronic Payments

9The amount that you designate will be

debited from your bank or financial institution on the date that you specify.

Credit Card

Credit Card

Payments

Payments

Credit Card Payments

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Barcodes

Barcodes

Barcodes

9Form 502 (internet version) 2D barcode will include data from the Form 502B as a third page.

9If the Form 502 has all of the required data in the 2D barcode and all 3 pages are submitted, the form should process without problems.

Barcodes

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Barcodes

9Switch 2D barcode default to ON if your software supports 2D technology.

9It cannot read handwritten changes; if a change is made, reprint the entire return.

9Do not staple or destroy the barcode.

Forms Mailing

Forms Mailing

Mailing Dates

9Employer withholding coupon books will be mailed by the end of December, except for accelerated filers, whose books will be mailed mid-November. 9Personal estimated tax vouchers will be

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Errors

Errors

Most Common Errors

9Incorrect banking

account and routing numbers for direct deposit of refunds 9Local income tax

miscalculated or missing

Most Common Errors cont’d

9State and local earned income tax

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Most Common Errors cont’d

9Special nonresident tax not computed 9Personal tax returns submitted without

W-2s or 1099s when withholding is claimed

9Standard deduction or itemized deduction box not checked

9Total exemption box not completed

Most Common Errors cont’d

9Tax credits claimed without required

documentation attached

9Nonresident tax paid by a pass-through entity on wrong line or documentation (K-1) not attached

Taxpayer Service

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Taxpayer Service

9Lines will be open February 1 - April 15, Monday - Friday, 8:00 a.m. – 7:00 p.m.

Important Information

9Web site www.marylandtaxes.com

9Tax practitioner hotline: 410-260-7424 9Tax practitioner e-mail:

taxprohelp@comp.state.md.us

9E-file tax practitioner hotline: 410-260-7753

Important Information cont’d

9E-file tax practitioner e-mail:

efil@comp.state.md.us

9Tax forms e-mail:

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Coming Soon

Coming Soon

Coming Soon

9 Although we prefer electronic filing, Sales & Use Tax forms will be accessible online. It will be a fillable form which will have a correct 2D barcode when printed.

9 Admissions & Amusement Tax returns will be able to be filed online.

9 Fiduciary returns will be able to be filed online. 9 Expanded Preparer Services (pServices) 9 We will announce these enhancements on the

Comptroller’s website as they become available.

Questions?

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